The year 2016 was a challenging one for Van Oord. Revenue decreased to an amount of EUR 1.71 billion (2015 EUR 2.58 billion) and net profits went down to EUR 90 million (2015: EUR 169 million).
In dredging, revenue was EUR 1,189 million in 2016 (2015: EUR 1,622 million): the downward trend being most obvious in Areas Europe and Middle East & West Asia (Suez Canal). Deteriorated market conditions were tangible in the Offshore oil & gas division, with revenue standing at EUR 130 million, considerably lower than in 2015 (EUR 242 million). Offshore Wind Projects generated EUR 394 million in revenue, compared with EUR 715 million in 2015. The decline mainly had to do with the Gemini project, which was in full swing in 2015 and was completed in 2016.
After two years of explosive growth, 2016 was a year of dwindling revenue and declining profits. Worsening conditions in the dredging and offshore oil and gas markets put revenue and margins under pressure. The downward trend has many different causes: the completion of major projects, the low oil price, slower growth in world trade and overcapacity of dredging and offshore equipment. Market conditions in the maritime sector were extremely difficult in 2016.
The decrease in net profit to EUR 90 million was driven largely by lower revenues and pressure on project margins.
The profit for 2016 also comprised an impairment (EUR 17 million) on the Stingray, a shallow water pipe-lay barge active in the Offshore oil & gas division. This impairment reflects revised expectations in terms of the vessel’s utilisation rate over its lifetime.
Van Oord is a solid business with a robust financial position. The company’s shareholders’ equity amounts to EUR 905 million, compared with EUR 902 million at year-end 2015. Its solvency ratio (equity as percentage of assets) stood at 33.3% (2015: 32.2%). Net debt amounted to EUR 79 million, up slightly on the level reported at the end of 2015 (EUR 68 million).